On Tuesday, Gov. Arnold Schwarzenegger signed legislation that will entitle workers laid off from small businesses to federal aid for health insurance. The legislation was authored by Assembly man Dave Jones, D-Sacramento.

Initially workers laid off by big firms were under the federal stimulus bill. The new bill allows people who work for employers with two to 19 employees and lost their jobs through layoff or other involuntary termination to avail 65 percent federal subsidy of their health insurance costs.

Jones, chairman of the Assembly Health Committee, said as many as 100,000 Californians could receive the subsidy under the new law.

AB 23 allows people who lost their jobs from Sept. 1, 2008 through Feb. 16, 2009, to seek that coverage now with the federal subsidy. Those people who didn’t initially chose to continue their health insurance under the Consolidated Budget Reconciliation Act can avail it now.